MetaBank's loss may be Republic's gain.
That could be an unintended consequence of yesterday evening's Supervisory Directive from the OTS that pushed MetaBank out of the refund anticipation loan market.
Republic Bank (Kentucky) is an FDIC-regulated bank that has provided refund loans to Jackson Hewitt for some time. In 2010, Republic stepped in and added to its commitment to Jackson Hewitt after the tax preparer lost their RAL capital from Pacific Capital Bancorp. Republic had made about one-quarter of their RALs. In 2010, they made all Jackson Hewitt's RALs. Jackson Hewitt couldn't find a full replacement for the loss of the PCBC money, so they could only offer RALs in about half of their stores.
This had a significant effect upon Jackson Hewitt. JTX recorded an impairment to goodwill of $274.1